‘GLOBAL VOTE OF CONFIDENCE IN OMAN’S FUTURE’

The overwhelming response of investors shows the trust in Omani economy and its financial system

MUSCAT: A global vote of confidence in Oman’s future has been given by international investors who ploughed billions of dollars into the future of the Sultanate.

The success of a bonds issue means international investors have trust in Oman and its financial system, a senior official from the Ministry of Finance said.

“Oman has entered the international market to cover (the country’s) 2017 budget deficit. The response from international investors was around $20 billion. But the government has taken only $5 billion. This shows that the international investors have a was the amount international investors were ready to invest, though Oman government has taken only $5 billion good trust in Oman and its financial system,” Mohammed Jawad bin Hassan bin Suleiman, advisor at the Ministry of Finance, told Times of Oman.

Last Wednesday, Oman raised $5 billion from an international bond sale.

Economists said that completing the entire foreign borrowing plan for 2017 in a single issue, by selling $5 billion of international bonds, reveals global investors’ confidence in Oman and its ability to overcome the current economic downturn.

“There is confidence among investors about Oman’s economy for both long and short term,” Fabio Scacciavillani, Chief Economist at the Oman Investment Fund, said.

Oman’s bond sale last Wednesday, in tranches of five, 10 and 30 years, was about double the size that most investors had expected and a huge amount for a country which returned to the international bond market in 2016 after an absence of two decades.

Order books for the issue totalled $20 billion, bankers said, adding that the country can now count on strong international demand.

Loai Bataineh, CEO of Ubhar Capital, said it’s a very positive move. “Global investors abroad buying the unprecedented 30year bond, clearly shows that they trust the Omani economy with their money for long periods,” Loai added.

This was the first time that Oman had issued a 30 year maturity period bond, which accounted for $2 billion of the funds raised.